Author Topic: Looking for well-run commodity/precious mineral companies. Any ideas?  (Read 1158 times)

TwoCitiesCapital

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Re: Looking for well-run commodity/precious mineral companies. Any ideas?
« Reply #10 on: June 24, 2019, 06:11:24 PM »
Also, something I believe should be pointed out, typically these commodity indices are geared very heavily towards oil. It's not to say that all commodities aren't cheap (most are), but if the thesis is based on the relative value of financial investments versus the components of a commodities index, you probably need oil exposure.

It doesn't need to be the only thing you own, but if you don't own it, it's very possible the commodities index DOES revert and you still miss the rally.


SafetyinNumbers

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Re: Looking for well-run commodity/precious mineral companies. Any ideas?
« Reply #11 on: June 25, 2019, 07:21:23 AM »
Altura (ATU.V) is my favorite oil stock. Tiny microcap with a giant resource, no debt and smart management. They also have a new light oil exploration play that they will be testing this summer which might get some attention.
Top 5 positions: ELF IAM GCM.NT/GCM PIF EFR.DB

ajc

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Re: Looking for well-run commodity/precious mineral companies. Any ideas?
« Reply #12 on: June 25, 2019, 08:40:21 AM »

Thanks all, for the various potential trades, ideas, and commentary, so far. Lots of food for thought. One thing it brings home is how Wild West-like commodities are, and how superficial my knowledge of them is.
Just from doing some initial digging around, I think it's going to take me months (or more likely years) to get some kind of handle on the dynamics and where the real risks lie. I mean I think that's to be expected, but the last few days have made it even clearer.

I remember reading The Frackers by Gregory Zuckerman a few years back, which was an enjoyable book.
Trying to understand the space so far though, makes his narrative seem orderly and organized in comparison. It gives me a new respect for folks who consistently make money in this sector, and through each cycle.
Anyway, my appreciation to those who took the time to share their experience and insights.

@tonyjclayton

Saluki

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Re: Looking for well-run commodity/precious mineral companies. Any ideas?
« Reply #13 on: June 25, 2019, 10:24:28 AM »

Thanks all, for the various potential trades, ideas, and commentary, so far. Lots of food for thought. One thing it brings home is how Wild West-like commodities are, and how superficial my knowledge of them is.
Just from doing some initial digging around, I think it's going to take me months (or more likely years) to get some kind of handle on the dynamics and where the real risks lie. I mean I think that's to be expected, but the last few days have made it even clearer.

I remember reading The Frackers by Gregory Zuckerman a few years back, which was an enjoyable book.
Trying to understand the space so far though, makes his narrative seem orderly and organized in comparison. It gives me a new respect for folks who consistently make money in this sector, and through each cycle.
Anyway, my appreciation to those who took the time to share their experience and insights.

An indirect (and possibly safer) way to play the fracking trend is Intrepid Potash (IPI).   It's a small low-cost producer of potash (an oligopoly industry) but has been making a lot of money selling water to frackers.  They have water rights in some desert areas where a lot of fracking is going on, and each well that is fracked needs thousands of gallons of water.  I used to own it but sold out.  It's come down since then but still not cheap enough for me to buy back in yet. 
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable